Anthony Hsieh Returns To loanDepot Leadership After Proxy Battle

ByTMN Editor Reading Time: 2 minutes

After a dramatic proxy fight that seemingly led to his downfall, Anthony Hsieh is returning to an executive leadership position at loanDepot while President and CEO Frank Martell steps down.

Martell’s departure will be effective at the company’s stockholder meeting in June. He will transition to a Board advisory role.

“During Frank’s tenure, loanDepot successfully implemented the Vision 2025 strategic plan which stabilized the company during a turbulent mortgage market, significantly reduced costs, and made important investments for the future,” loanDepot Board member and Chair of the Nominating and Corporate Governance Committee Pam Patenaude said in a press release.

Hsieh returns to leadership as Executive Chairman of Mortgage Originations.

The board plans to engage an executive search firm to find a new CEO, but if no one is found by June 4, Hsieh will serve as interim CEO until one is hired.

“We are very fortunate that a leader of Anthony’s caliber is available to help guide the Company as we search for a new CEO. He built the company from the ground up, and there is no one with more passion and energy for loanDepot than Anthony,” Patenaude added.

Hsieh appointed Martell in 2022, but fissures erupted in 2023 when Hsieh was pushed out as executive chairman after sending a letter to stockholders announcing his nomination of Steve Ozonian to the board of directors. He planned to force the decision using his voting power as the company’s largest shareholder.

With the company struggling to come back from the post-Covid lending slowdown, Hsieh cited an “urgent need for board refreshment” to combat dwindling mortgage demand.

The resulting proxy fight led to a back-and-forth between Hsieh and the board. It was eventually resolved by a vote to increase the board’s size, allowing Ozonian to join without displacing another member.

Now, Hsieh says he is “ready to roll up my sleeves to do the hard work with our origination teams – and Team loanDepot at large – as we build upon the terrific foundation that’s been set here.”  

“By working together, challenging the status quo, and innovating, we can position our beloved Company for greatness – even in the face of a very protracted and challenging market cycle,” he said.

loanDepot will release its year-end and fourth-quarter 2024 financial results on March 11 after market close.